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Most people feel gap between rich and poor is widening in UK, research finds

By Mark Mansfield
Elderly woman holding pound coins in her hands - Photo Yui Mok/PA Wire

Most people believe the gap between the rich and poor is growing, research suggests.

A survey of 37,000 members of the Co-op also found three in four believe many people do not have equal access to the resources they need.

Over four-fifths of respondents said the gap between rich and poor is growing, and a similar number believe society is more divided than 10 years ago.

Only one in five said they feel optimistic about the future of the country.

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Cost of living

Major concerns highlighted in the study include the cost of living, healthcare, the environment, cuts to local services, and prospects for the younger generation.

Shirine Khoury-Haq, Co-op Group chief executive, said: “We’re living in a world where powerful voices are actively encouraging businesses to row back on their social value commitments.

“In the pursuit of short-term profit opportunities, some other businesses are choosing to scale back or water down their social value work, shutting the door on progress for the future.

“As a co-operative, owned by our members, we’re choosing to step further forwards, choosing to speak up and speak out, to be a voice for positive change when it matters most.”

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14 comments

Amir

I can believe this research. With a lack of a wealth tax anywhere on the horizon, our country is pandering to the rich and elite.

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Felicity

The current government is more fearful than anything; capital flight and the perception of a loss of foreign investment, with raised interest rates on government borrowing. I don't think Rachel Reeves will be the one to take the bull by the horns sadly.

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Evan Aled Bayton

This is an international problem with world society moving to a few extremely rich people and the disappearance of a robust financially stable middle class. Ultimately it will lead to fewer democratic governments and revolution.

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Bilbo

The solution is stronger international agreements to counter this trend, which is exactly why the world's superwealthy are sponsoring division and disengagement in the name of freedom and control.

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Gwyn Hopkins

Whether Labour or the Tories are in power, there seems little doubt that in the UK the gap between the rich and poor is growing. This can be measured via the GINI COEFFICIENT (by percentages, the lower the better). Earlier in the decade this showed that South Africa was the worst at 63.0%, Slovenia the best with 24.6% with the UK at a modest 35.1% and rising. UK governments should closely monitor this measure and take steps to reduce it on a regular basis. It is not surprising that the Scandinavian Countries have some of the best Gini Coefficients.

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Felicity

Low pay has been endemic for decades for the average worker, while the Stock Market and property does very nicely.Time to tax stocks and shares like Income Tax as well as a land wealth tax. Labour has four years to get this right, or Reform will literally cash in on disillusionment.

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Bilbo

If our leaders want growth they should be taking more from the pockets of those who won't change their spending habits as a result, and putting it in the pockets of those who will spend it. If capitalism is to work then people need to be buying stuff. These superwealthy folk are the real anti-capitalists.

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John Young

Bilbo is right. If you give money to a billionaire he probably won't spend it in the UK. He'll already have far more than he needs. And if he was to spend it he'd buy a caribbean island or an even bigger yacht than he already has. So zero benefit to the UK economy. If ordinary people have more money they'll spend it on better food, better clothes, going out, buying a better car etc etc. In other words a direct boost to the economy. To my mind a wealth tax is exactly what we need. The proposal is 2% on wealth over £10 million. So if you're worth £11 million you'll pay 2% on the extra £1 million. So £20,000. And if you're any good with money, which your wealth would suggest you are, you'll be able to increase your wealth by say 5% a year. So the wealth tax would cost you £20,000 while your wealth would go up by £550,000. Can any of you provide an argument that defeats that logic ?

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Bert

There needs to be a fair principle behind the state taking a share of asset wealth to avoid it being labelled as the "politics of envy" which can be used to morally justify extreme tax avoidance. So I would look to extend capital gains tax to be applied not just when a high value asset is sold but annually on any increase in asset value above inflation over the last 12 months. No payment is due if the value falls or increases less than inflation. And when the asset is sold, any interim cgt paid in the previous three years (no more) can be deducted from the cgt due on sale. The fairness principle is that the gain in asset value above inflation is only possible because the economy is doing well, so contributing some of this profit annually to the state that is creating the conditions that allow this profit to be generated is a reasonable thing to do. Of course some will say the gain isn't real until realised and estimates by independent valuers are unreasonable. This can be corrected by simply selling the asset and having the previous three years of "unjustified" interim cgt payments reduce or even refund the final cgt payment. Caveat emptor applies to all periods beyond three years. Losses cannot be carried forward or offset against other assets otherwise they'll all be buying football teams.

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Frank

Awarding pay rises by percentage will indeed widen a gap between the poor and wealthy. A person who earns £100k a year will benefit from a £4,500 (£90 per week) at 4.5% whereas a person on £30k a year will get just £1,350 (£26 per week) at 4.5%. Bring back pay awards in pounds not percentages.

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Adam

And yet when the billionaires are asked to pay a tiny fraction of tax to close the gap, the government prevents it, and the cap doffers defend them. This gap is being made to grow intentionally.

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Bert

The EU was gunning for billionaires which is why the billionaires told us to leave.

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Garycymru

That was very obvious from the start of the Brexit campaign, which was why I was very shocked at how easily the Brits were duped.

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In reply to Garycymru

Bert

I think everyone feels a bit sorry for billionaires. Imagine living a life where everyone is just being friendly because they are hoping for a handout. The only people you can really trust is other billionaires who are just the worst company.

Reply

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